"Peter was a volunteer in the campaign and I've dismissed him," said Zanowic. "There were no formal positions in the campaign but he took on the role as chairman." He added the issue between Terry and Franco had been going on for months.

"I took action as soon as I found out about the incident," said Zanowic. "I'm disappointed in Peter. We're dedicated to the diverse community in Bayonne and we won't tolerate any racism."

Zanowic said, "I'd like to issue an apology to Terry and the Smith campaign. We plan on continuing with our campaign."